Golden Rule # 1
Real Estate For 20 Cents On The Dollar
REAL ESTATE INVESTORS, IF YOU COULD BUY SINGLE FAMILY HOMES WITH NO MORTGAGE... TED THOMAS
Golden Rule # 1
Know what you ' re buying. This includes the size of the parcel, how many buildings are on it, zoning, restrictions, easements, the annual amount of property taxes, the appraisal value, previous sale prices, and current condition.
The next question that must be answered is where and when are the auctions taking place? Normally auctions are conducted at county offices, but not always. Regardless of the location, it will be announced in advance of the auction. Some counties hold one big annual event while others schedule tax defaulted property auctions monthly, annually in the United State of America there’ s over 5,000 tax defaulted auctions.
Secondly, you must know how the bidding process works. Rules vary from state to state, taxing district to taxing district. Some counties use an online bidding process which is becoming more and more popular, but the majority still hold live auctions you may attend in person.
Taxes are usually assessed at 1 to 1.5 percent of the property ' s value. So a piece of real estate valued at $ 100,000 will be assessed somewhere around $ 1,000 in taxes each year. Three years of back taxes would equal $ 3,000 and the local county will probably ask for a minimum bid at the tax defaulted property auction of $ 3,500 the county will add late payment penalties to the back taxes.
At the auction, each parcel number is announced in turn; then the auctioneer asks for opening bids. It works much like any other auction; the bidding goes up until there are no more bids. The person who wins with the highest bid is awarded a Treasurers Tax Deed from the county treasurer. Make note there’ s dozens of unique bidding processes, this is only one.
Real Estate For 20 Cents On The Dollar
There’ s big money to be made buying tax defaulted property at auction Tax defaulted property( tax deed) auctions allow you to buy low and resell for a quick profit. Do your research, and you ' re bound to find success!